Peapack-Gladstone Financial Corporation Reports Strong Results for the Second Quarter of 2012
(firmenpresse) - BEDMINSTER, NJ -- (Marketwire) -- 07/30/12 -- For the quarter ended June 30, 2012, Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the Corporation) recorded net income available to common shareholders of $2.72 million and diluted earnings per share (EPS) of $0.31. This quarter's EPS reflected growth of 40.9 percent when compared to diluted earnings per share of $0.22, for the quarter ended June 30, 2011. The current quarter's EPS also reflected growth when compared to diluted earnings per share of $0.30 for the immediately preceding quarter ended March 31, 2012.
For the six months ended June 30, 2012, the Corporation recorded net income available to common shareholders of $5.33 million and diluted earnings per share of $0.61. EPS for the current six month period reflected growth of 52.5 percent when compared to $0.40, for the same six month period last year.
Frank A. Kissel, Chairman and CEO, stated, "This was another solid quarter for us, reflecting the strength of the Corporation and reinforcing our belief that the local economy continues to stabilize."
Mr. Kissel also noted that this was the first quarter since the fourth quarter of 2008 that the Corporation was not required to pay a preferred dividend, as the preferred stock issued in January 2009 to the Treasury under its Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012.
Net interest income, on a fully tax-equivalent basis, was $13.06 million for the second quarter of 2012, up from $12.34 million for the same quarter last year.
On a fully tax-equivalent basis, the net interest margin was 3.52 percent for the June 2012 quarter compared to 3.49 percent for the June 2011 quarter.
In comparing the June 2012 quarter to the June 2011 quarter, the positive effect of increased loans, funded by core deposit growth, reduced investment securities and a slight increase in overnight borrowings, was partially offset by the effect of lower Treasury yields, which compressed asset yields more than deposit costs.
Average loans totaled $1.10 billion for the second quarter of 2012 as compared to $968 million for the same 2011 quarter, an increase of $133 million.
The average residential mortgage loan portfolio for the second quarter of 2012 increased $92 million when compared to the same quarter of 2011. The increase is attributable to originations retained in the portfolio that have outpaced loan paydowns. During this period of lower interest rates, refinance activity has generally been robust. Many of these loans have been retained in portfolio. However, the Corporation does sell much of its longer-term, fixed rate loan production as a source of noninterest income and as part of its interest rate risk management strategy in the lower rate environment.
The average commercial mortgage and commercial loan portfolio for the second quarter of 2012 increased $45 million from the second quarter of 2011. The increase was attributable to commercial mortgage demand, principally from high quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.
Mr. Kissel stated, "We continue to be successful in finding new solid lending opportunities. This has been the sixth quarter in a row where we have reflected growth in our loan portfolio." Loan originations were $200 million for the first six months of 2012, up from $153 million for the same six month period of 2011. Included in the total were commercial mortgage/commercial loan originations of $73 million for the 2012 period. Mr. Kissel noted, "We still have room to continue to benefit from funding our loan production with cash flows from our investment portfolio. However, we will continue to conservatively underwrite our loans, as we have in the past."
As of June 30, 2012, the residential first mortgage loan and the commercial mortgage/commercial loan pipelines (loans approved, but not closed and funded) stood at $47 million and $38 million, respectively, with many other lending opportunities in the discussion stage.
Average total deposits (interest-bearing and noninterest-bearing) increased $59 million for the June 2012 quarter from the same quarter last year.
Average noninterest-bearing checking balances grew $55 million for the second quarter of 2012 when compared to the second quarter of 2011. Average interest-bearing checking balances for the quarter ended June 30, 2012 grew $18 million from the same quarter in 2011. Average savings accounts increased $14 million from the second quarter of 2011 to the second quarter of 2012.
Overall checking and savings growth continues to be attributable to the Corporation's relationship orientation. The Corporation has successfully focused on:
Business and personal core deposit generation, particularly checking;
Establishing municipal relationships within its market territory; and
Growth in deposits associated with its commercial mortgage/commercial loan growth.
Average certificates of deposit (CDs) declined $16 million for the June 2012 quarter from the June 2011 quarter. These higher-cost CDs were basically replaced with lower cost, more stable core deposits.
From December 31, 2011 to June 30, 2012, total deposits declined $21 million, as various municipalities utilized funds that were held on deposit at year end.
Mr. Kissel commented, "The Corporation's deposit mix continues to consist primarily of lower-cost, more stable core deposits (checking, savings and money markets), which benefits our cost of funds and our franchise value."
PGB Trust and Investments generated $3.26 million in fee income in the second quarter of 2012 compared to $2.83 million for the second quarter of 2011, reflecting 15.2 percent growth. The market value of the assets under administration of the Trust Division stood at $2.06 billion at June 30, 2012, up from $1.96 billion reported at December 31, 2011 and up from $2.01 billion reported at June 30, 2011.
Craig C. Spengeman, President of PGB Trust & Investments, commented, "We continue to see growth in new relationships engaging our services and advice, as a result of our success in guiding clients through these challenging and volatile markets. Mr. Spengeman further noted, "Recent key additions to staff enhance our ability to both grow and service our valued client base."
Other noninterest income, exclusive of Trust fees, totaled $1.41 million in the June 2012 quarter compared to $1.50 million in the same quarter a year ago. Compared to the second quarter of 2011, the 2012 quarter included: reduced gains from the strategic sales of securities; reduced service charges, as customers have been more diligent in managing their accounts; and a $26 thousand net loss on disposition of REO. The effect of these was almost fully offset by increased fee income from sale of longer term, fixed rate residential mortgage loans, due to higher origination levels, as well as a decision to retain less fixed rate loans in portfolio.
The Corporation's total operating expenses were $11.70 million in the June 2012 quarter compared to $11.04 million in the June 2011 quarter. The 2012 expense levels included: costs for the Corporation to keep up with the increased regulatory burden on financial institutions; costs associated with key additions to staff in PGB Trust & Investments, to enhance their ability to grow and service their client base; increased commissions related to increased loan originations; and normal salary increases. The net effect of those additional costs was partially offset by various operational efficiencies.
The Corporation's provision for loan losses for the quarter ended June 30, 2012 was $1.50 million, lower than the $2.00 million provision recorded in the June 2011 quarter.
At June 30, 2012, nonperforming assets totaled $22.1 million or 1.40 percent of total assets, compared to $26.3 million or 1.65 percent of assets at December 31, 2011 and $18.4 million or 1.21 percent of assets at June 30, 2011. Mr. Kissel commented, "We have continued to make progress in resolving problem assets, and we believe that progress will continue. In fact, we expect that several more problem loan/property workouts are on the immediate horizon."
As noted last quarter, the preferred stock issued in January 2009 under Treasury's Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012. At June 30, 2012, including the effect from this redemption, the Corporation's leverage ratio, tier 1 and total risk based capital ratios were 7.15 percent, 11.27 percent and 12.52 percent, respectively. The Corporation's ratios are all above the levels necessary to be considered well capitalized under regulatory guidelines applicable to Banks. Additionally, the Corporation's common equity ratio (common equity to total assets) at June 30, 2012 was 7.24 percent of total assets, reflecting growth from 6.81 percent of total assets at December 31, 2011.
As previously announced, on July 19, 2012, the Board of Directors declared a regular cash dividend of $0.05 per share payable on August 16, 2012 to shareholders of record on August 2, 2012.
Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.58 billion as of June 30, 2012. Peapack-Gladstone Bank, its wholly owned community bank, was established in 1921, and has 23 branches in Somerset, Hunterdon, Morris, Middlesex and Union Counties. The Bank's Trust Division, PGB Trust and Investments, operates at the Bank's corporate offices located at 500 Hills Drive in Bedminster and at four other locations in Clinton, Morristown and Summit, New Jersey and Bethlehem, Pennsylvania. To learn more about Peapack-Gladstone Financial Corporation and its services please visit our website at or call 908-234-0700.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "may," or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:
a continued or unexpected decline in the economy, in particular in our New Jersey market area;
declines in value in our investment portfolio;
higher than expected increases in our allowance for loan losses;
higher than expected increases in loan losses or in the level of nonperforming loans;
unexpected changes in interest rates;
inability to successfully grow our business;
inability to manage our growth;
a continued or unexpected decline in real estate values within our market areas;
legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs;
successful cyber attacks against our IT infrastructure and that of our IT providers;
higher than expected FDIC insurance premiums;
lack of liquidity to funds our various cash obligations;
reduction in our lower-cost funding sources;
our inability to adapt to technological changes;
claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; and
other unexpected material adverse changes in our operations or earnings.
A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on form 10-K for the year ended December 31, 2011 and our subsequent Quarterly Reports on Form 10-Q. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Corporation's expectations.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
This press release contains certain supplemental financial information, described below, which has been determined by methods other that U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of the Corporation's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Corporation's financial results. Management believes that the Corporation's presentation and discussion, together with the accompanying reconciliation, provides a complete understanding of factors and trends affecting the Corporation's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Corporation strongly encourages investors to review it consolidated financial statements in their entirety and not to rely on any single financial measure.
Jeffrey J. Carfora
EVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 30.07.2012 - 13:20 Uhr
Sprache: Deutsch
News-ID 169763
Anzahl Zeichen: 0
contact information:
Town:
BEDMINSTER, NJ
Kategorie:
Commercial & Investment Banking
Diese Pressemitteilung wurde bisher 261 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Peapack-Gladstone Financial Corporation Reports Strong Results for the Second Quarter of 2012"
steht unter der journalistisch-redaktionellen Verantwortung von
Peapack-Gladstone Financial Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
